Hi Barbara

Perhaps I should post some FACTS concerning Social Security, since
there are so many MISCONCEPTIONS about it floating around.

The Social Security ACT was signed into Law by FDR on 8/14/35.
The First Taxes collected to fuel the SSA started on Jan. 1937, with a
few LUMP SUM Payments made in that month. The first lump sum payment
was 17 cents.
Regular monthly benefits did not start until January of 1940.

As an aside: Medicare passed into law July 30, 1965, but
beneficiaries could not sign up for the program until July 1, 1966.

ORIGINALLY: Social Security WAS just a retirement program under 1935
Law.

Social Security was designed to be totally self-supporting.
At the time of inception, it was estimated that by 1980 there would be
over 47 Billion Dollars in Reserve Funds. They reached this Goal 6
years faster than expected, in 1974 they were well ahead of schedule.

However, the government dipped into these reserves reducing them to
ONLY 26 billion in 1980, they also lost the 6.9% current interest they
would have earned on that money.

TODAY 2005: The Social Security Reserve Fund is Over 1 Trillion
Dollars.

From 1937 to 2002:
The SSA has taken in 8.7 Trillion Dollars.
They have only paid back out 7.4 Trillion Dollars.

The Reserve Funds held in Trust by the SSA are invested in INSURED
investments, no chance of loss of the principle. By Law the Reserve
Funds held in Trust by the SSA, MUST DRAW INTEREST.

Since 1974, when the SSA met its Reserve Trust of 47 Billion dollars,
it was in perfect Balance. It had the funds to pay all current
retirees and those who had paid into the system, if the SSA was shut
down. Meaning the money coming into the SSA after that date could be
held in Trust for the person paying it into the system. The excess
collected, plus the interest collected on the Reserves, was more than
sufficient to cover the operating costs of the Social Security system.

Source: SSA.gov/History

TTUL
Gary