| Author | Message | ||
     Sifo |
So my mom has started complaining about her Social Security being reduced because of new means testing rules. I have to say I was a bit surprised because I hadn't heard about this change. Last night we had dinner another couple, and her mom is in same situation. Today I tried to find some information on how and when this came to be. Surprisingly, there's very little information I can find about this. Mostly what I've found is that the GOP are evil because it's an idea floated by both Bush and Christie. It looks like it's actually been done already by BO however. It's got to be a very recent change, because I do find opinion pieces on the idea from just a few months back, such as this from May of 2015. http://thehill.com/blogs/congress-blog/economy-bud get/240976-means-testing-wont-save-social-security So does anyone know the story on this? Who initiated it? Did it go through Congress? Is this a program that increases progressively over a period of years? I will say hat it's a pretty crappy thing to have happen to you as a retiree, to suddenly have thousands of dollars taken away from your "benefits". I guess retirees are expected to just sell their retirement homes to make ends meet. | ||
| Reindog |
Never heard of it as actual legislation. I suspect your mom might be confusing something. | ||
| Sifo |
I was wondering the same, but it's not just my mom. Both are telling the exact same story. | ||
| Oldfartnbuell |
Just got my 2016 statement,NO REDUCTION. A 16 cent raise! YEAAAA! | ||
| Panshovevo |
I could be way off base here, but I seem to remember hearing about the COLA being reduced. Some might be misinterpreting this...or not. | ||
| Ducbsa |
Discouraging people from saving for themselves would have the effect of making them more dependent on government, so it would be attractive to the current Regime. | ||
| Two_seasons |
Sifo said..." I guess retirees are expected to just sell their retirement homes to make ends meet." An alderman in Waukesha actually said this to a female retiree several years ago when she complained about the high property taxes. Several years later I saw him in AutoZone and admonished him for his unkind words to her. To which he replied "I don't recall saying that" Typical lying scum ruling class! | ||
| Court |
There is no "means testing" and that can of worms will likely not get opened or you'll have folks, myself included, saying . . . "if you want to not pay me what I was promised, then simply give me back the $1M+ of MY money that was contributed and we'll call it good. I once did the calculation of what I'll get, assuming some a "normal" life span and what I'd have, had I invested in the same money. The government, big surprise, is really •••••• at what they do. I suspect, in your Mom's case, she may have income that could account for her benefits being reduced. You can read details HERE. If so, she will likely also see increase benefits, down the road, based on those earnings. One way or another . . . all the best to your Mom and my compliments to you for being involved, concerned and proactive. | ||
| Sifo |
Thanks for the link Court. I'm having a hard time understanding where my mom or my friend's mom would be getting "income" as defined in that link.
Neither one has worked for years. Both would get pensions, investment income, and interest. I'm not sure if my friend's mom would be getting any annuity income or not. All of that is exempt from income though. Both are elderly folks who have been receiving SS for many years now. Both are suddenly having their SS reduced for the first time in their retirement. I may have to ask her for more details, but this is one heck of a coincidence if nothing has changed from the government. | ||
| Davegess |
SS is not ands never been an investment plan. Give the demographic reality of the time it was set up and for most of its life, taxing working folks to transfer a minimal amount of support to the elderly made pretty decent sense. The government's not done a bad job of running SS, they have done EXACTLY what the law requires. Personally I think we should set up a system that works like the Wisconsin Retirement Plan and take 5-10% of salary, )SS currency takes about 15% based on your and your employers tax)and invest in long term actuarily driven stocks, bonds real estate etc. This program has been very well run for a long time and is fully funded. The money is yours and is carefully and complexity accounted for. When you retire you can take the whole amount out as a limp sum or buy an annuity from them. Almost everyone buys the annuity as they are pretty hard to beat. This would solve our retirement savings dilemma once and for all. Our current system requires each and everyone of us make a bet on how long we will live and either run out of money by giving a long time or living more frugally that we need to because we end up dead at 75. It is a not a pretty picture. | ||
| Sifo |
I got some more info from my mom. I don't fully understand it all, but it has to do with Income Related Monthly Adjustment Amounts (IRMAA). Bottom line is she is getting about $276 less this year than last year. I have no idea if this is the same thing that happened to my friend's mom. Apparently they work with Modified Adjusted Gross Income (MAGI), which includes incomes from retirement accounts that are normally tax exempt. Seems contradictory to Court's link above. Welcome to trying to figuring out government programs.  http://www.zanebenefits.com/blog/bid/256075/Health -Care-Reform-Adjusted-Gross-Income-VS-Modified-AGI https://www.medicare.gov/forms-help-and-resources/ mail-about-medicare/irmaa-determination.html | ||
| Court |
>>>The money is yours That's the biggest misconception. That somehow the Federal Income CONTRIBUTIONS Act (F.I.C.A.) is a tax. It's not . . . It is YOUR money. Any sort of means testing would be akin ti illegal seizure of property. The entire "redistribution" mindset is a cancer. It's interesting . . . I'm about the only one of my peers that continues to work. But, I am one of the ones who missed out on the very cushy "Defined Benefit" programs. My company retirement plan isn't bad but all the folks, my age, who had been with the company for 20 years left with full medical and getting roughly $6,000 a month. Most had fled to jurisdictions where pensions are not taxed. Taxes influence behavior. >>>>Welcome to trying to figuring out government programs. You ain't seen nothing yet. My Dad's birthday was December 1. He was talking to them one day, they asked him his birthday to which he replies "December 1st". The government gal . . "ok, the last day of November.". Dad: No, the first day of December. Government Gal: "In our system we that the first day of December as the last day of November" They do, for some reason, the same thing with years. If you can figure it out . . . God bless you. Bet best . . . don't look to your social security to be much more than icing on the cake. My plan is to draw and suspend until I am 70 which nearly doubles the benefit. It, at best, is a screwy system and support a cottage industry of folks who will gladly, for a fee, explain it to you. | ||
| Ducbsa |
More here: https://www.socialsecurity.gov/OP_Home/rulings/oas i/09/SSR63-15-oasi-09.html |
