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View Diary: Bernie Sanders goes against grain, introduces real plan to save Social Security (166 comments)

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  •  No, the benefit calculation is tied directly (0+ / 0-)

    to the cumulative contributions of the last few years before one is eligible. So if those contributions go up, the benefits would go up - unless the benefits structure were also changed.

    This is an unnecessary complication, and pure pandering - and SS doesn't even need the money for a quarter century.

    Our time would be better spent focusing on general revenue shortfalls and income taxes than "fixing" problems that might - if the economy remains sluggish - appear a quarter century out.

    Non enim propter gloriam, diuicias aut honores pugnamus set propter libertatem solummodo quam Nemo bonus nisi simul cum vita amittit. -Declaration of Arbroath

    by Robobagpiper on Thu Aug 25, 2011 at 03:39:14 PM PDT

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    •  It's only tied to income (1+ / 0-)
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      WiddieDawg

      In that only income below the cap is used in calculating AIME. Without knowing how this would change under Sanders' plan, we can't know how the benefits for those straddling the "donut hole" might change.

      And SS benefits are not tied to contributions of the last few years of eligibility... they're based on the 35 years of highest SS-qualified income over your working career.

      I couldn't agree more that this is a non-issue right now...if anyone on the committee is going to the mat for a revenue increase, I hope it's for the general income tax and not SS.

      •  As above, mea culpa on the time period (0+ / 0-)

        (going from memory here), but - and Bruce Webb will correct me if I'm wrong - but there's no benefits cap hard-wired in. It's a consequence of the contributions cap. If the contribution cap goes away, without additional changes that basically take an insurance premium with no corresponding benefit (which itself violated the spirit of SS), then a removal of the cap increases benefits - slowly at first, but once an entire career is covered under the lifted cap, considerably.

        Non enim propter gloriam, diuicias aut honores pugnamus set propter libertatem solummodo quam Nemo bonus nisi simul cum vita amittit. -Declaration of Arbroath

        by Robobagpiper on Thu Aug 25, 2011 at 04:34:03 PM PDT

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