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Subject:  Re: Social Security Reform Date:  2/17/2005  4:58 PM
Author:  JAFO31 Number:  44695 of 98925


JAFO: <<<<From what source are you obtaining the reduction numbers you are using.>>>>

"Well, I wasn't making them up ;-)"

I never thought that you were.

"I fully understand that there are no firm numbers on the table. I was using numbers that were published in a Washington Post article on January 4th:

The change would save trillions of dollars in scheduled expenditures and solve Social Security's long-term deficit, but at a cost. According to the Social Security Administration's chief actuary, a middle-class worker retiring in 2022 would see guaranteed benefits cut by 9.9 percent. By 2042, average monthly benefits for middle- and high-income workers would fall by more than a quarter. A retiree in 2075 would receive 54 percent of the benefit now promised. "

After further review, I think that you are mixing apples and oranges. The article you linked recited:

"That adjustment is based on wage growth over that time span. Under the commission plan, the adjustment would be based instead on the rise of consumer prices."

Changing in the adjustment format would apply to all beneficiaries. It has, as far as Ican tell, nothing to do with the reduced benefit amounts that those who elect private accounts would receive. GWB is in favor of this inflation-adjustment change even if private accoutns do not come to fruition.

I would still like to see the formula that would be used to calculate the reduced benefits for those who chose private accounts.

Regards, JAFO
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