Discussing the topic of Social Security today

The renowned Brookings Institution, a centrist or nonpartisan think-tank, has put forth a comprehensive blueprint to address the potential financial security concerns of Social Security. The blueprint, which takes into account demographic shifts, technological advancements, and rising costs, aims to ensure the system's solvency over a 75-year period from 2023 to 2098.

The blueprint suggests that future changes could include demographic shifts like aging populations, advances in biotechnology slowing aging, rising costs of healthcare, expansion of Medicaid and Medicare, increased price regulation, higher taxes on wealthy individuals and corporations, and increased government deficits and debt to support living standards.

One of the key aspects of the proposal is the aim to achieve universal coverage for state, city, and county employees who are currently outside the federal retirement system in certain places. This is a significant step towards ensuring a more comprehensive social security network.

The blueprint also addresses the issue of the Old-Age and Survivor Insurance (OASI) Trust Fund, which is forecast to exhaust its funds in 2033. Federal employees are encouraged to reevaluate their retirement plans due to a high number of retirements and downsizing. When the OASI Trust Fund exhausts its funds, it will only be able to finance about 83% of scheduled benefits, resulting in a 17% reduction in Social Security checks for beneficiaries.

The proposal aims to strengthen child benefits and protections for Americans with disabilities and survivors of workers who die. It also suggests increasing the taxable maximum ceiling for FICA taxes, changing rules for pass-through payroll tax, and increasing payroll tax.

It's important to note that people receiving Social Security benefits before the blueprint becomes law would not have those benefits lowered. Last year, Social Security paid over $1.5 trillion in benefits to more than 72 million beneficiaries. However, the 2025 Social Security Trustees Report has not been released yet.

Under the proposal, retirement benefits for federal employees come from three sources: the Basic Benefit Plan, Social Security, and the Thrift Savings Plan (TSP). After retirement, the retiree receives annuity payments from these benefits and has distribution options for the TSP. The agency also contributes to the Civil Service Retirement and Disability Fund (CSRDF) and the Social Security Trust Fund, and makes automatic and matching TSP contributions.

The proposal is designed such that revenue increases would match the benefit reductions minus the benefit improvements over the 75-year period. The aim is to make the Social Security system more progressive, a move that is expected to have a positive impact on the overall financial security of the system.

The Basic Benefit Plan, unique to federal employment, provides an immediate or deferred annuity benefit after five years of service. The plan is designed such that it would not disrupt the current retirement plans of federal employees, providing them with a sense of security and stability.

Georgetown College found that Brookings was referenced by conservative politicians almost as frequently as liberal politicians, earning a score of 53 on a 1-100 scale with 100 representing the most liberal score. This indicates the broad appeal and nonpartisan nature of the Brookings Institution's proposals.

In conclusion, the Brookings Institution's blueprint offers a comprehensive and bipartisan solution to address the Social Security funding shortfall, aiming for solvency over a 75-year period. The proposal addresses a wide range of issues, from demographic shifts to taxation, and aims to ensure the financial security of Social Security for future generations.