Page 4 - Social Security - Beginning to Today

SOCIAL SECURITY GOING BANKRUPT

Social Security took on a new look when the American People

where told Social Security was on the verge of bankruptcy in the

early 1980s. Reform was demanded by the people and as a result

politicians formed a 15 member committee, and in April of 1983
Social Security reform legislation was signed into law based on the

recommendations of the 15 member commission.

This reform legislation replaced the original PAY AS YOU GO

system of $1 paid in by the workers to $1 paid out to Social
Security retirees to with very little imbalance at the end of each

accounting period to a PAY IN ADVANCE system of $5 paid in by

the workers to $4 paid out to Social Security retirees to with very
little imbalance at the end of each accounting period a $5 in - $4

out system.

The remaining $1 would alleviate the short term bankruptcy issue,

and also would be used to build a cash reserve for the 78 million
baby boomer’s in the future retirement pipeline.

SOCIAL SECURITY PROBLEM - SOLVED

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