"The report makes clear that cutting guaranteed benefits for retirees would have a devastating impact on families with a disabled worker and on survivors," House Ways and Means Committee Chairman Charles Rangel of New York said today. "The American people fully expect that any discussions on the future of Social Security will look to strengthen and preserve, not undercut, Social Security's guaranteed benefits." The top Republican on the committee, Jim McCrery of Louisiana, acknowledged that Social Security benefits vulnerable families, but did not say, as Rangel did, that Social Security reform must maintain the same level of benefits.
"This report provides useful information to policymakers as we thoughtfully and carefully consider all options to strengthen Social Security," McCrery said.
There is no guaranteed benefit.. The Supreme Court decided that in Flemming v Nestor
ReplyDeletehttp://www.ssa.gov/history/nestor.html
Background to the Case:
The fact that workers contribute to the Social Security program's funding through a dedicated payroll tax establishes a unique connection between those tax payments and future benefits. More so than general federal income taxes can be said to establish "rights" to certain government services. This is often expressed in the idea that Social Security benefits are "an earned right." This is true enough in a moral and political sense. But like all federal entitlement programs, Congress can change the rules regarding eligibility--and it has done so many times over the years. The rules can be made more generous, or they can be made more restrictive. Benefits which are granted at one time can be withdrawn, as for example with student benefits, which were substantially scaled-back in the 1983 Amendments.
In this 1960 Supreme Court decision Nestor's denial of benefits was upheld even though he had contributed to the program for 19 years and was already receiving benefits. Under a 1954 law, Social Security benefits were denied to persons deported for, among other things, having been a member of the Communist party. Accordingly, Mr. Nestor's benefits were terminated. He appealed the termination arguing, among other claims, that promised Social Security benefits were a contract and that Congress could not renege on that contract. In its ruling, the Court rejected this argument and established the principle that entitlement to Social Security benefits is not contractual right.