"Indexing Longevity": The Newest Scheme To Cut Social Security Benefits

[Itsthetruth]

In Overhaul of Social Security, Age Is the Elephant in the Room
By ROBIN TONER and DAVID E. ROSENBAUM

New York Times
June 12, 2005


Edward M. Gramlich, a governor of the Federal Reserve Board and an authority on Social Security, says that if the architects of Social Security "had known about the explosion in life expectancy, they would have put in some adjustment in the retirement age."

One way to address the problem - and the direction some lawmakers seem to be heading in - is an automatic adjustment in the retirement age or the benefits received at each age to reflect increases in life expectancy. That way, retirees' total lifetime benefits would remain more or less constant even as they lived longer. Automatic changes are already made for average wage increases and price inflation.

For individuals, such a change, called indexing for longevity, would be little different from a direct increase in the retirement age or a specified reduction in benefits, said Douglas Holtz-Eakin, director of the Congressional Budget Office. But for the system, Mr. Holtz-Eakin said, it would make a big difference because the changes would be automatic and would not require new laws. It might also be politically attractive because politicians would be relieved of the responsibility of periodically voting to raise the retirement age or to cut benefits.

Still, pollsters question whether even a gradual adjustment based on life expectancy will sell. "You can call it indexing for longevity in Washington, but in America it's raising the retirement age," said Mr. Garin, the Democratic pollster. Mr. Bolger, his Republican counterpart, said, "There's no appetite for anything related to age among the public."

http://www.nytimes.com/2005/06/12/politics/12age.html?oref=login

[JDPriestly]

1. Age discrimination

The problem is that age discrimination is rampant. I lost my job due to it. And now my husband is losing his due to it. He is a teacher at a university in a special program. In that program, every single teacher over the age of 55 has been cut in hours and/or laid off over the past two years. None of the younger teachers who had been there more than a a year were cut or laid off. If Social Security benefits are delayed it will be a disaster for the many people who are being forced to take early benefits because they have lost their jobs. There is a tragedy in the making. If our GDP and GNP are rising as fast as the Bush administration claims it is, why is there a problem?

[sam sarrha]

2. the Poor will always live shorter lives.. work'n for the MAN is Hard.

just another kick in the Nuts by the rich..

[FreedomAngel82]

3. It's just so wrong

How moral is this?? :mad: Pisses me off. At the anti-privatizing rally and told how it's about turning young against old etc. :mad: It pisses me off.

[Itsthetruth]

4. kick

eom

[Itsthetruth]

5. The Social Security "Age Penalty"

Republicans seem to always come up with some misleading and catchy slogan to advance their reactionary agenda.

I think we need a catchy name for this latest proposal to cut Social Security benefits. Let's call this innocent sounding "indexing longevity" proposal by its rightful name.

How about the "Age Penalty" or the "Stop Retirement Penalty"? Your ideas and suggestions for pinning a name on this proposal are welcomed!