In the early nineteen-eighties, the United States Social Security trust fund had a near-death experience as the size of the reserve fund assets declined to almost zero. This degringolade necessitated remedial action, resulting in the appointment of the Greenspan Commission and the implementation of major structural reforms to the design of the Social Security system. […]

October is the month for the annual meetings of the International Monetary Fund (IMF) and the World Bank in Washington. Central bankers, finance ministers, private sector executives, representatives from civil society organizations, and academics meet to discuss issues of global concern. The IMF’s agenda and objectives revolve around the theme of stability in the global […]

The 2017 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance (OASDI) Trust Funds presents updated information regarding the financial status of the United States Social Security system. The Board of Trustees is composed of six members: Secretary of the Treasury, Secretary of Labor, Secretary of […]

The United States Social Security system is a dynamic system in many different ways. Certain features of the benefit structure are subject to periodic parametric adjustments that are typically tied to inflation, as measured by changes to consumer prices or national wage levels. Benefits in course of payment are subject to a cost-of-living adjustment (COLA) […]

The main source of financing for the United States Social Security system is a fixed payroll tax that is currently set at the rate of 6.20% of covered annual earnings up to a limit of $127,200 and is payable equally by both employers and workers. However, a fixed payroll tax rate is not entirely appropriate […]