Oct 5, 2005 3 min read

Recently I was engaged in a conversation with a group of people and was truly amazed to find out that many of them were not aware of the fact that their employers are required, by law, to deposit a sum of money equal to theirs, on their behalf, into the Social Security trust fund. As of 2005, each employee contributes a 6.2 percent Social Security portion on earnings up to the maximum taxable amount of $90,000. In addition to that, employees must contribute a 1.45 percent Medicare portion on all earnings. Each and every employer is required by law to deposit an exact amount in the Social Security trust fund on their behalf. This is a very significant contribution made by our employers. Guess it falls in the category of an additional fringe benefit.

It adds up as follows: 6.2 percent plus 1.45 percent equals a 7.65 percent employee contribution. Add to that a matching employer contribution and this equals a total of 15.3 percent. A rather large payroll tax for our Social Security checks.

No wonder they want to privatize it. They really want to eliminate the employer’s share of it, thus becoming more profitable. This fake crisis has nothing to do with self-management of your retirement funds. The name of the game is getting rid of the employers’ contribution while disguising it as an improvement. Wake up and smell the B.S.

This has shades of “Weapons of Mass Destruction” written all over it: Give citizens another fake solution. If the general public insists on maintaining the employers’ contribution, the subject will die a natural death. If you do not speak out and be heard, you will lose once again.

How many of you honestly think you are capable of wisely or correctly investing your retirement funds? What happens if you invest in some company such as Enron, and at or near retirement age, find out you have been swindled out of it like those employees? Try to get a job paying a livable wage after age 55 or 60. If you let the government handle it, they will spend it just like they have done with most of the excess Social Security funds.

What really needs to happen is to stop spending these excess funds in the general budget expenditures with all of its excesses and fiscal irresponsibility. Take it out of the general funds and treat it like other retirement funds. Put the money back. If a firm in the private sector pulled a deal like this, they would be a candidate for prosecution.

I am suggesting we all think long and hard about this proposal and make our wishes heard. Write to your elected congressional representatives and voice your opinion, or do nothing and lose.

Robert E. Workman

Connellsville