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THE DAILY ASTORIAN • WEDNESDAY, AUGUST 12, 2015
Things to know about
Social Security’s
election-year crisis
pay half and employers pay half.
Social Security also gets revenue
IURPWD[HVRQEHQH¿WVDQGLQWHU-
est on the program’s two trust
WASHINGTON — The 11 funds.
million Americans who receive
Last year, the wage tax gener-
Social Security disability face ated $756 billion. By law, the tax
VWHHS EHQH¿W FXWV QH[W \HDU ² revenue is divided between the
right in the middle of a presiden- disability trust fund and Social
tial election — unless Congress Security’s much larger retirement
fund. The retirement fund gets
acts.
Social Security’s trustees say about 85 percent of the money,
the disability trust fund will run and the rest goes to disability.
Over the past 20 years, the
out of money in late 2016. That
would trigger an automatic 19 fund balances have gotten out of
whack. The retirement fund has
SHUFHQWFXWLQEHQH¿WV
7KHUHLVDQHDV\¿[DYDLODEOH enough money to pay full bene-
but Republicans in Congress are ¿WV XQWLO DFFRUGLQJ WR WKH
Social Security trustees. But they
resisting.
GOP lawmakers see the disability fund is projected to run
funding crisis as an opportu- out of money in the fourth quar-
AP Photo/File
nity to improve a program that ter of 2016.
President Franklin D. Roosevelt signs the Social Security Bill in Washington Aug. 14, 1935. As Social Security approach- they believe is plagued by waste
es its 80th birthday on Aug. 14, 2015, the federal government’s largest benefit program faces serious financial problems and abuse. Democrats are much
:hat¶s the easy ¿x"
that could be fixed with only modest changes, if Congress acts quickly.
Congress could redirect tax
more defensive about the pro-
gram, noting that its modest revenue from the retirement fund
EHQH¿WV NHHS PLOOLRQV RI GLV- to the disability fund, as it has
abled workers and their families done in the past. The last time
was in 1994.
out of poverty.
If Congress redirects the tax
Lawmakers from both politi-
cal parties would like to resolve revenue, the retirement fund
the issue this year, protecting would lose one year of solvency,
EHQH¿FLDULHV IURP VWHHS FXWV so both the retirement program
before presidential politics con- and the disability program would
sumes the capital. But a deal have enough money to pay full
remains elusive as Social Secu- EHQH¿WVXQWLO
By STEPHEN
rity approaches its 80th birthday
OHLEMACHER
:hy dR RepuEliFans
Friday.
MORE ONLINE
Associated Press
RppRse the ¿x"
President
Franklin
Roosevelt
How would you fix
Republicans
say that sim-
signed
the
Social
Security
Act
Social Security?
WASHINGTON — As So-
on Aug. 14, 1935. The disability ply redirecting the tax revenue
http://interactives.
cial Security approaches its 80th
would be taking money from
program was added in 1956.
ap.org/2012/
birthday Friday, the federal gov-
Some things to know about retired workers to pay disabled
social-security
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the disability program’s funding workers — robbing one fund to
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gram stands at a pivotal point in
crisis:
Also, Republicans say they
its history.
CPI would reduce the annual
Bene¿ts are mRdest
want changes in the disability
Relatively modest chang-
COLA by 0.3 percentage point,
The average monthly pay- program to reduce fraud and to
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on average.
still save it for generations of
This option would eliminate ment for disabled workers and encourage disabled workers to
their families is $1,019. That re-enter the workforce.
Americans to come, but Con-
19 percent of the shortfall.
AP Photo/File
gress must act quickly, and even
• adopt a new measure of comes to $12,228 a year. A 19
limited changes are politically Ida Fuller, 95, of Brattleboro, Vt., who received Social Secu- LQÀDWLRQWKDWWDNHVLQWRDFFRXQW percent cut would lower the av- :hat dR 'emRFrats say"
rity check No. 1 in January 1940, is congratulated by Robert the higher costs that older peo- HUDJHDQQXDOEHQH¿WWROHVVWKDQ
Democrats say they too want
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to reduce fraud and to encourage
The longer lawmakers wait, E. Normandie, district manager of Vermont’s Social Securi- ple have to pay for health care. $10,000.
disabled workers who can work
the harder it will become to ty division, on getting 368th check as the program reaches This measure, called the CPI for
HRZ is the disaEility
to re-enter the workforce. But
maintain Social Security as a its 35th anniversary in Brattleboro Aug. 14, 1970.
the Elderly, would increase the
program that pays for itself,
they accuse Republicans of man-
prRgram ¿nanFed"
annual COLA by about 0.2 per-
6RFLDO 6HFXULW\ LV VHOI¿- ufacturing a crisis by refusing to
a key feature since President them,” said Sen. Bernie Sand- JDSEHWZHHQVFKHGXOHGEHQH¿WV centage point, on average.
Franklin Roosevelt signed the ers, I-Vt., who is running for and projected tax revenues starts
This option would increase nanced by a 12.4 percent tax on redirect tax revenue between the
wages up to $118,500. Workers trust funds.
Social Security Act on Aug. 14, the Democratic nomination for off big and quickly becomes the shortfall by 13 percent.
1935.
president.
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“The more time that they
The poverty rate among would be $571 billion, accord-
take, the less acceptable the those 65 and older has inched LQJWRDJHQF\GDWD2YHUWKH¿UVW
LEGAL NOTICE
changes will be because there up in recent years. But it still is GHFDGH WKH GH¿FLW ZRXOG WRWDO
needs to be adequate time for the VLJQL¿FDQWO\ORZHUWKDQWKHSRY- more than $7 trillion.
public to prepare and to adjust to erty rate for younger age groups,
Social Security uses a 75-
whatever changes Congress will in large part because of Social \HDU ZLQGRZ WR IRUHFDVW LWV ¿-
make,” Carolyn Colvin, acting Security.
nances, so the projections cov-
commissioner of the Social Se-
Sanders has proposed in- er the life expectancy of every
curity Administration, said in an creasing Social Security’s an- worker paying into the system.
interview.
nual cost-of-living adjustment,
Options to address Social
Social Security’s long-term or COLA, and increasing min- 6HFXULW\¶V ¿QDQFHV DORQJ ZLWK
¿QDQFLDO SUREOHPV DUH ODUJHO\ LPXP EHQH¿WV IRU ORZZDJH the share of the 75-year shortfall
a result of demographic chang- workers.
that each one would eliminate:
es. As baby boomers swell the
The average monthly pay-
Case Update You may have seen a previous notice in this case. The Oregon
Taxes
ranks of retirees, relatively few- ment is $1,221. That comes to
state rule on unclaimed money in class actions has recently
6RFLDO 6HFXULW\ LV ¿QDQFHG
er workers are left to pay taxes. about $14,700 a year.
changed, and your rights may be affected.
In 1960, there were more
Sen. Orrin Hatch, R-Utah, by a 12.4 percent tax on wag-
People who did not previously receive a letter about this case,
WKDQ ¿YH ZRUNHUV IRU HYHU\ scoffs at the idea of expanding es. Workers pay half and their
file a claim, or opt out of this lawsuit may need to take action.
person receiving Social Secu- EHQH¿WV
employers pay the other half.
If this applies to you, you must file a claim or opt-out of this
rity. Today there are fewer than
“Where are they going to 7KH WD[ LV DSSOLHG WR WKH ¿UVW
lawsuit to preserve your rights. Any money that is not claimed
three. In 20 years, there will be get the money?” asked Hatch, $118,500 of a worker’s wages,
will be paid to Oregon Legal Services and an entity (or entities)
about two workers for every chairman of the Senate Finance a level that increases each year
chosen by the Court.
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Committee, which has jurisdic- ZLWKLQÀDWLRQ
“Remember, these are our tion over Social Security. “They
Options:
most vulnerable population,” don’t ever seem to give any con-
• apply the payroll tax to all
What is this An Oregon jury found that BP West Coast Products LLC
Colvin said. “These are the el- sideration to how deeply in debt wages, including those above
case about? (“BPWCP”) charged more for gas than the amount registered
derly who helped to build this RXUFRXQWU\LVDQGKRZGLI¿FXOW $118,500. This option would wipe
at the pump and failed to properly disclose its prices when
country. These are the disabled it’s going to be to get out of it.”
out 66 percent of the shortfall.
it charged a 35-cent fee to consumers who used debit cards
who certainly did not wish to
• increase the combined pay-
to pay for gas at Oregon ARCO stations and ampm locations.
become disabled.”
Surpluses
roll tax rate by 0.1 percentage
BPWCP has denied the claims in this case and plans to appeal
For much of the past three point a year, until it reaches 14.4
The options fall into broad
the jury verdict.
FDWHJRULHV EHQH¿W FXWV WD[ decades, Social Security pro- percent in 20 years. This option
increases or a combination of duced big surpluses, collecting would eliminate 49 percent of
Am I eligible You can file a claim now if:
both.
more in taxes than it paid in the shortfall.
to
file a claim?
• You purchased gas at Oregon ARCO or ARCO ampm
None is popular.
EHQH¿WV6RFLDO6HFXULW\¶VFRP-
Retirement age
locations between January 1, 2011 and August 30, 2013
Nearly 60 million retirees, bined trust funds are now valued
Workers qualify for full re-
disabled workers, spouses and at $2.8 trillion.
and paid a 35-cent debit card transaction fee,
children get monthly Social Se-
The retirement trust fund has WLUHPHQW EHQH¿WV DW DJH D
• You did not receive a letter about the lawsuit,
curity payments, a number that enough money to pay full bene- threshold that gradually rises to
• You did not already file a claim, and
is projected to grow to 90 mil- ¿WVXQWLO$WWKDWSRLQWWKH 67 for people born in 1960 or
• You did not opt-out.
lion over the next two decades.
program would collect enough later. Workers are eligible for
If
you already received a letter about this case, do not file a
About 168 million workers payroll taxes to pay about 79 early retirement at 62, though
claim
because you will receive an automatic payment.
pay Social Security taxes.
SHUFHQWRIEHQH¿WVWULJJHULQJDQ PRQWKO\EHQH¿WVDUHUHGXFHG
Options:
automatic 21 percent cut.
Push and pull
• gradually increase the full
The disability trust fund is
How can I File a claim online or by mail by September 21, 2015. If you file
Adding to the gridlock, pol- projected to run out of reserves retirement age until it reaches
file a claim? a valid claim, you will be eligible to receive $164.85 or more,
icymakers are moving in oppo- much sooner, in late 2016. If 68 in 2033. This option would
and you will give up your right to individually sue BPWCP for the
site directions. Republicans are that happens, it would trigger eliminate 15 percent of the
claims in this case. The previous notice talked about a $200
SXVKLQJWRFXWEHQH¿WVZKLOHD an automatic 19 percent cut in shortfall.
payment, but the fees required to pay Class Counsel will reduce
growing number of Democrats EHQH¿WV
• raise the early retirement
payments by $35.15.
is pulling to expand them. The
Obama and other Democrats age to 64 in 2023, and the full
debate is playing out in Con- want to redirect tax revenue retirement age to 69 in 2027.
What are my If eligible, you may also:
gress and the presidential cam- from the much bigger retire- This option would wipe out 29
paign, increasing the likelihood ment fund to the disability fund, percent of the shortfall.
• Exclude yourself (or opt-out) online or by mail from the
other rights?
that Washington will deal with as Congress has done in the past.
lawsuit by September 21, 2015. You will keep your right to
COLAs
Social Security the same way it But Republicans say that would
sue BPWCP yourself.
Each year, if consumer pric-
has so many other issues — not be like robbing seniors to pay
• Object to the notice or claims process (or the fees if you file
es increase, Social Security ben-
until it becomes a crisis.
the disabled.
a claim now) by September 18, 2015.
Some 72 members of Con-
If the two funds were com- H¿WVJRXSDVZHOO%\ODZWKH
• Do nothing. If you did not previously take action and now
gress signed a letter to President bined, they would have enough increases are pegged to an in-
do not file a claim or exclude yourself, you will give up your
Barack Obama in July, calling PRQH\ WR SD\ IXOO EHQH¿WV IRU ÀDWLRQLQGH[7KLV\HDUEHQH¿WV
right to get any money from this lawsuit and your right to
IRU6RFLDO6HFXULW\EHQH¿WVWREH both programs until 2034, ac- went up by 1.7 percent.
sue BPWCP yourself.
Options:
enhanced.
cording to the trustees.
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“In my view, given the fact
But long before then, Social
that poverty among seniors is 6HFXULW\¶V ORQJWHUP ¿QDQFLDO called the Chained CPI, which
For More Information
going up, that seniors are strug- problems could become too big assumes that people change
Visit: www.DebitCardClassAction.com
gling, that people with disabil- to solve without painful reme- their buying habits when prices
increase to reduce the impact on
ities are struggling, we have dies or excessive borrowing.
Call: 1-866-329-5931
JRW WR H[SDQG EHQH¿WV QRW FXW
Once the surplus is gone, the their pocketbooks. The Chained
By STEPHEN
OHLEMACHER
Associated Press
SOCIAL SECURITY AT 80
&KDQJHVQHHGHGWRVDYHWKHIHGHUDOJRYHUQPHQW¶VODUJHVWEHQH¿WSURJUDP
You Could Get $164 or More
If You Bought Gas in Oregon at an
ARCO or ARCO ampm Station
and Paid a Debit Card Fee