Perrin Claims 2.7 Trillion Borrowed from Social Security
Dan Perrin, the executive director of The Seniors Center is soliciting support to help pass H.R.1218 titled the Social Security and Medicare Lock-Box Act. Congressman Tim Walberg introduced this bill in the House Feb. 24, 2017. The bill is currently in the introductory phase and must pass the House, then the Senate and signed by the president to become a law. According to wwwCongress.gov, the H.R.1218 bill will establish the following:
“(1) in the Federal Old-Age and Survivors Insurance Trust Fund, a Social Security Surplus Protection Account; (2) in the Federal Hospital Insurance Trust Fund, a Medicare Surplus Protection Account. (3) Grants the executive branch a commission to study the most effective vehicles for the investment of the trust funds, other than investments in the form of U.S. obligations.
The Secretary of the Treasury will be required to do the following:
(1) must transfer the annual surplus of the trust fund to its respective account; (2) may not invest the balance in the account until a law takes effect that authorizes, for amounts in the trust fund, an investment vehicle other than U.S. obligations.”
H.R. 1218 should not be confused with the Social Security and Medicare Lockbox Act of 2001 passed by the U.S. House of Representatives, which has similar protections. The act established procedural rules to protect Social Security and Medicare trust fund surpluses but would expire upon enactment of Social Security and Medicare reform legislation. Both bills have the caveat, “that the trust funds surpluses would be used to reduce publicly held debt until Social Security or Medicare reform legislation is enacted.” The goal is to prevent the surplus being used for non Social Security purposes and “any other purpose than health security,” according to the Social Security Administration.
The H.R. 1218 bill was co-sponsored by Congressman Scott Taylor earlier this year in August. In a press release, Congressman Taylor explained why he decided to co-sponsor the bill. “For years I have said we need a lock box on Social Security to prevent any Congress from using our money elsewhere. The same goes for Medicare. These are not just vital retirement programs but a promise from our government that elderly Americans can safely retire with dignity. There has been a longstanding practice in Washington of using Social Security surpluses to pay for other government projects and programs. We owe it to our seniors, and those yet to retire, to keep this program solvent for all Americans, which is exactly what this bill does.”
In his “Save Social Security” petition to President Trump, Perrin claims, “More than $2.7 trillion have been borrowed from the Social Security Trust Fund and replaced with worthless IOUs.” You may visit the website: https://theseniors.centerto sign the petition and to learn more information about how the government uses Social Security funds. The protection of Social Security Income is important to all citizens who contribute through the Federal Insurance Contributions Act Tax (FICA) and the Self-Employed Contributions Act Tax (SECA). President Franklin Roosevelt had you in mind when he signed the Social Insurance Program (Social Security) into law in 1935. Your benefits are based on the amount you contribute during your career. Learn more at www.SSA.gov.