Each year Social Security's Trustees release a report projecting the trust funds into the future. Basically, this is all the Trustees do and they really don't do the projecting themselves. It's done by Social Security's actuaries. Last year the report was issued on the Friday before Memorial Day. I think that was the latest it had ever been released. There was criticism over the late release. We're well beyond Memorial Day and there's no sign of the report. I have no idea what's going on but I'll guess that the delay isn't being caused by Social Security's actuaries. I expect their part was done several months ago. Maybe the delay is caused by wrangling over the verbiage that the Trustees add to the projections. Maybe the problem is the Medicare Trustees report which is released at the same time. Anyway, it's time for the report.
5 comments:
Yes, the report is past due - I think the law says that they should report by April 1. I think the Obama administration has been late every year. However, I think 2010 was issued later (August 5). The delay that year was attributed to the PPACA, which had just been passed and which had big effects on the Medicare report.
The problem, if you can call it a problem, is that the draft report has too much " good" news - shows solvency to a later date. The "optimistic" scenario now even shows that there is no need for major changes (only minor tweaks) to preserve current benefits. The actuarial forecasts in the report are at great variance with current received " wisdom" and several years of " doom and gloom" commentary. The Trustees are struggling how to square actuarial figures with politics.
No major changes needed now that the trust fund expires in 2017 instead of 2016
Now that is good news to be optimistic about
Don Levit
It's the other trust fund that matters politically, Don. Oh, but you know that, don't you, you jokester you.
All the trust funds have no cash - only promises to pay cash.
In my book, there is a distinct difference between debt and equity. Unfortunately, many people think that debt equals equity. For example, adherents of the "trust fund perspective" believe Medicare Part D is paid up, even though new debt must be issued each year to pay for 75% of the premiums.
With people holding such a perspective, I have to draw the line and say "No more dialogue."
Don Levit
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