To ask Questions or make Suggestions, you may e-mail paradisetown@comcast.net , or don.ranck@gmail.com or call us at 768-8222, mail us a letter at: Supervisors, P.O. Box 40, Paradise, PA 17562, or send a carrier pigeon...

7.  10.Jan.2017  Revised proposal, added suggestion to support Congressman Sam Johnson of Texas Social Security Reform Bill.  Sent to Congressman Pat Meehen.

6.  06.Jan.2012  Congressman Joe Pitts responded to the following proposal.

5.  17.Nov.2011   
Could you please review this proposal which I want to send to Senators Pat Toomey and Bob Casey, and to Congressman Joe Pitts.   Do you see any flaws in the concept, or the reasoning?  To get a copy of an Excel table showing this proposal, e-mail me and I will send it to you.   -- Don Ranck

 

Proposal to extend Social Security and Medicare 30 years into the future at no new cost to taxpayers:
 Congressman Sam Johnson of Texas has introduced legislation to keep Social Security solvent for the future. If that legislation does not pass, or even if it does, here is a proposal that could help with no tax increase or forced reduction in benefits.  Many people nearing age 62 see Social Security benefits as a pension.  But we would do better if we instead saw those benefits as an insurance policy.  This is a proposal to extend the life of Social Security for those who may need it into the next generation and beyond.  An internet search of the law shows a history of many changes in the past 75 years, particularly changes in the calculations used to provide monthly payments to eligible recipients.    ssa.gov
Currently the cap on increasing Social Security income deferred to age 70 provides 32% more than at age 66, and 57% more than at age 62, based on eligible recipients income of their last 40 quarters of earnings. Where did that cap originate? If the cap was removed and the actuarially-neutral increase was allowed to rise indefinitely, those who didn't need the payments could defer longer for a considerably higher future potential benefit, if ever needed, and the actuarially-neutral increase would not cost taxpayers a dime more. If this voluntary program would attract just 5% of eligible recipients who could afford to defer, over 14% of the fund could be saved annually, extending the life of Social Security more than 30 years, without any other changes in the law.
This proposal has never been tried before, so far as we have been able to find.  The concept is to provide enough incentive to those who can afford to defer beyond age 70.  The longer that eligible recipients defer, the greater the savings to SSA, and the reward for deferring is larger payments if they ever do begin taking payments.  Currently there is a 25% penalty for starting payments at age 62, and a 32% reward for deferring payments to age 70, but there is no reward for deferring beyond age 70.  This creates a strong incentive to ALL eligible recipients to start taking payments by age 70 even if potential recipients do not need them.  Currently, according to the Social Security Administration, 55% of eligible recipients start at age 62, and less than 1% start at age 70, and the average monthly payment is nearly $1200 per month, but the maximum is over $2600 per month, depending on contributions.  The longer the deferral, the greater the payment would be, creating an incentive to continue deferring that is greater than the incentive to start taking benefits!.  The key is to remove the age 70 cap, and to encourage eligible recipients to defer if they can.  By age 75 average payments would cover Assisted Living if needed (min. $4k/month) and by age 85 payments would cover Nursing Care (min. $8k/month).  Extending the actuarially-neutral annual increase beyond age 70 may be enough incentive to extend the life of Social Security, but may need federal legislation to implement.  Extending the age at which SSA payments are initiated by eligible recipients would likely also reduce Medicare costs as well, because most of those who would defer SSA benefits would likely be entrepreneurs and business executives who, if able to continue working, would continue creating jobs for others and thereby increase payments into the SSA and Medicare systems through those additional wages and salaries.   
Please consider this proposal.  I would be happy to answer any questions.  Let's get a federal campaign under way to encourage those who can afford to defer to do so beyond age 70!
 
Don L. Ranck                  don.ranck@gmail.com
 


4.  Please declare a BURN BAN!  --  R.B.  09.Sep.10  Note:  We agree that the dry conditions warrant extreme caution, a Burn Ban Ordinance requires a lot of bureaucracy and time and continues for 30 days even if it rains. 
3.  The History of Paradise Township (8.) needs some additions and corrections, concerning how Paradise was named and early families and tracts, and some minor spelling.  -- K.E. 03.Mar.10  (edited 03.Mar.10)
2.  Please put speed limits on the southern end of Cherry Hill Road.  I walk that road to get to my cousin's house, speeders make it very dangerous.  -- L.C.  27.Jan.10
1.  You list scouting info., please also list 4-H info.  --  H.R. 30.Jan.10


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