Friday, February 04, 2005

Maybe You Can't Take It With You

Under one variation, any funds that remained available under these annuities after death would revert to the government, meaning the money could not be inherited. While that would ensure retirees a monthly check while they live, it also could undercut what polling shows is one of the most persuasive arguments on behalf of private accounts, that they could be inherited.
So if you die prior to retirement, you may be able to pass on your account to your heirs, as the President stated in his speech. But once you retire, and the annuity is set up, there is a possibility that any remaining funds at your death would revert to the Social Security fund.

This is one of the main talking points I have heard when discussing this issue with my Right leaning friends. "It's MY money, I can do what I want with it, and when I die, I can leave it to my heirs" Well, I guess that isn't a guarantee.

Listen, I am a reasonable, objective person. I am open to looking at price indexing over wage indexing, it just seems practical at this stage. I am interested in providing investment incentives that DO NOT effect the current cash flow into the program. I am willing to see a rise in the cap (currently $90,000) but NOT if social security benefits are means tested. EVERYONE who pays in should be allowed to receive benefits back, I don't care how rich they are. It seems only fair.

But I am not comfortable with diverting funds for a secure program to investment environments that can not provide a minimum guaranteed benefit. I will not sit back and listen to a President say that there won't be enough money going into the program to support it, then propose a plan that further siphons off those funds. Ya simply can't have it both ways!


UPDATE from the comments: (Haloscan won't let me comment) Swiftee: I haven't found anything anywhere ensuring inheritance rights post annuity creation, but have found several interpretations where it specifically will restrict those Rights. Please find me some more reading materials so I can educate myself.

I have found quotes for Dean Bartlett of the President's White House staff stating clearly that the President's proposal will do NOTHING to protect Social Security.

This is a classic GOP shell game to call something what it isn't, to get a benefit for the handpicked few.


No comments: