Social Security Finances Fixed – Forever

Pre-funding at birth: A Senior Entitlement Reform Plan that will work for all Americans:

Imagine that after months of intense debate the following article appeared in the New York Times.

Social Security Finances Fixed – Forever 

Washington DC 9/1/2016: Today, President Smart signed the American Birth Contribution Act into law. The ABC law, as it is commonly called, mandates that the Social Security Administration shall deposit $1000 into a new ABC-Social Security account for every US citizen born after midnight January 1, 2017. By investing in a total market equity index, the ABC fund is predicted to mirror the historic US average annual rate of return of 10.4%. At that growth rate, a beneficiary can expect her account value to double nine times by age 63 and ten times by age 70. A ten fold doubling would place the account balance at over $1 million and would be sufficient to pay 30% more in inflation adjusted benefits for the life of the beneficiary.

Furthermore, the law guarantees through the full faith and credit of the United States that benefit purchasing power will be at least equal to the average purchasing power of Social Security benefits forecasted under current law. The guarantee helps ensure that ABC beneficiaries will no longer have to fear the security of their Social Security benefits because of political gamesmanship, economic slowdowns, stock market fluctuations, changes in inflation computations, underfunding of accounts or government shutdowns. 

The ABC plan not only protects Social Security for the next and all subsequent generations but goes a long way to resolving the current Social Security system’s financial shortfall. As ABC beneficiaries die over time, the ABC Plan will amass sizable surpluses. These surpluses will be used to sure up today’s Social Security shortages and are projected to eventually eliminate the $20 plus trillion in Social Security’s unfunded liability. 

The annual cost to fund the ABC plan for the expected 4 million US citizens born each year is approximately $4 billion and shall be funded by reducing the amount Congress may borrow each year from the Social Security surplus fund. 

During the signing ceremony President Smart said that the ABC-Social Security law was the keystone of her platform’s Win-Win solutions for America. She added that she was looking forward to Congress sending her the ABC-Medicare bill next month so that she could sign that bill into law and that this government could finally start eliminating our nation’s $60 trillion in unfunded liabilities. 

You can learn more about the American Birth Contribution plans at

www.americansunitedparty.blogspot.com/2011/07/executive-summary.html