The Social Security Solvency Strategy (4S)

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1 How the 4S Strategy Works: It highlights the birth years of 1946 to our babyboom generation. Baby-boomers represent the 2 nd largest generation of our nation s population, behind Millennials. As such, 211 marked the year in which baby boomers became eligible for Social Security retirement and began the strain on the Trust Funds that populate its Reserves Birth Year Baby Boom Generation 6 Age in 211

2 The Problem: * Our working population is not large enough to sustain the needed revenue required to satisfy the Social Security income need of all that will be entering retirement, over the next 18 years (dating from 211). In addition, we are seeing the largest sustained wave of retirees enter into eligibility for receiving Social Security, than our nation has ever seen Birth Year Baby Boom Generation 6 Age in 211

3 The Current Situation: In 216, 7.7M citizens received Social Security Income Only. Another 8.3M received both Social Security & Supplemental Security Income (SSI), Totaling 66M citizens combined. Social Security benefits are paid from two Trust Funds (one for OASI & one for DI), which are funded with payroll contributions (FICA taxes) paid by employees and employers. By the end of 22, the Trust Funds are expect d to have grown to $2.9T Breakdown of Citizens Receiving Social Security Only 8.M > or = age 6 Disabled & < age 6 Other

4 The Current Situation: -Continued- It is customary for Congress to shift funds back and forth between the DI Trust Fund & the SSDI Fund to prevent depleting of the Fund Reserves. The recommended strategy by Social Security s actuaries is that raising FICA taxes temporarily would provide sufficient dollars to pay full scheduled benefits thru Information obtained from The Arc, Summer, 2 Issue: Don t Cut Our Lifeline Breakdown of Citizens Receiving Social Security Only 8.M > or = age 6 Disabled & < age 6 Other

5 Dollars Opportunity #1: In 216, the average income paid to a retired worker receiving Social Security per month was $1,341 or $16,92 per year. This translates into a cost of $693.6B in benefits for citizens who received SS only in 216. By taxing 3.7% on 1% of the $693.6B in SS benefits, we save $26B per yr., providing full paymt for one year for 1.6M recipients, thus slowing the depletion rate of the Trust Fund Reserves substantially In Billions 216 Cost of Social Security Benefits to the Largest Segment of the Population (those > or = age 6) 693.6B > or = age 6 26B Citizens Getting A 3.7% Tax on 1% of the Benefit Yields Source:

6 Opportunity #1: -Continued- Under the MilKe Plan, the recipients are also eligible to participate in the Omer 41k Plan. Therefore, any loss of income incurred from the 3.7% tax applied to 1% of SS income; along with the 6.2% premium for Medicare Part B, under the MilKe Plan, will have the potential to be regained, as a result of receiving their weekly distribution payout from the Omer 41k Plan Breakdown of Citizens Receiving Social Security Only 8.M > or = age 6 Disabled & < age 6 Other

7 Opportunity #2: In 216, in order to qualify for SSDI or SSI benefits, one must make less than $1,13 per month 2. Anyone working above those limits were considered to be doing SGA, Substantial Gainful Activity; and thus, no longer eligible for the benefit. Under the MilKe Plan, anyone receiving SS and SSI is ineligible to participate in the Omer 41k Plan unless they satisfy conditions of SGA Breakdown of Citizens Receiving Social Security Only 8.M > or = age 6 Disabled & < age 6 Other

8 Opportunity #2: -Continued- This incentivizes the SSI recipient to work & maximize their income earning potential. As a result, they will no longer be eligible for SSI. However, because of their job, under the MilKe Plan, individuals in this category will only be required to pay a federal flat-tax rate of 3.7%, in addition to the 6.2% Medicare payment. These payments, in conjunction with the 6.2% and the 3.7% paid via SS will satisfy the flat-tax 2% reqmt Breakdown of Citizens Receiving Social Security Only 8.M > or = age 6 Disabled & < age 6 Other

9 Opportunity #2: -Continued- This incentivizes the SSI recipient to work & maximize their income earning potential. As a result, they will no longer be eligible for SSI. However, because of their job, under the MilKe Plan, individuals in this category will only be required to pay a federal flat-tax rate of 3.7%, in addition to the 6.2% Medicare payment. These payments, in conjunction with the 6.2% and the 3.7% paid via SS will satisfy their flat-tax 2% reqmt Breakdown of Citizens Receiving Social Security Only 8.M > or = age 6 Disabled & < age 6 Other

10 Opportunity #2: -Continued- Lastly, the average disability benefit amount per month for 216 was $1,166, totaling annually $13, If 1/8 of the recipients of both, opted to participate in the Omer 41k Plan; thus, satisfying conditions of SGA (Substantial Gainful Activity), SSI would incur a savings of $3.8B, slowing even more, the rate of Trust Fund repository depletion. 3 Source: NOLO-- SS & SSI Disability & benefit Amounts for Breakdown of Citizens Receiving Social Security Only 8.M > or = age 6 Disabled & < age 6 Other

11 Opportunity #3: In this category, for both the 8.M people receiving and the 6.1M people receiving, neither will be eligible to participate in the Omer 41k Plan because they will not have full time employment, nor will they be recipients of Social Security Retirement. However, if full-time employment is obtained, participants will become eligible for participation in the Omer 41k Plan; thus making them ineligible for disability benefits Breakdown of Citizens Receiving Social Security Only 8.M > or = age 6 Disabled & < age 6 Other

12 Opportunity #3: -Continued- If.% opted for fulltime employment from the total of this category, being 14.1M people, Social Security would decrease the category size by 7, people. At an avg. benefit of $1,166 per month or $13, 922 per year, Social Security would save $98.2M. In addition, it would add to tax revenue as well as to the Trust Fund of the Social Security repository; thus, slowing its depletion even more Breakdown of Citizens Receiving Social Security Only 8.M > or = age 6 Disabled & < age 6 Other

13 Opportunity #4: Again, if.% of the 6.6M people in this category opted for fulltime employment, Social Security would decrease the category size by 3,3 people. At an avg. benefit of $1,166 per month or $13, 922 per year, Social Security would save $46M. In addition, it would add to tax revenue as well as to the Trust Fund of the Social Security repository; thus, slowing its depletion even more Breakdown of Citizens Receiving Social Security Only 8.M > or = age 6 Disabled & < age 6 Other